Boris Johnson’s authorities has been accused of hypocrisy for planning to chop controls on City bosses’ pay whereas calling for wage restraint within the public sector.
No 10 chief of employees Steve Barclay is claimed to have written to chancellor Rishi Sunak with a plan for “deregulatory measures to reduce the overall burden on business” and appeal to firms following Brexit.
This would contain eradicating restrictions on director and non-executive director pay, in accordance with a leaked copy of the letter seen by the i newspaper.
“I trust you’ll agree this is a more proportionate regulatory response and reflective of the new approach to regulation outlined in the ‘Benefits of Brexit’ publication in January,” it mentioned.
The paper reported that Mr Barclay additionally requested enterprise secretary Kwasi Kwarteng define additional measures to ease the burden on enterprise – referring explicitly to the necessity to alter curbs on bosses’ pay.
The Department for Business, Energy and Industrial Strategy (BEIS) confirmed it is exploring “whether there are any unnecessary restrictions on paying non-executive directors in shares, which could ensure they are fully invested”.
It comes because the PM, chancellor and cupboard ministers have argued that self-discipline and “restraint” on public sector pay are vital now to handle inflationary pressures downwards.
Speaking forward of a cupboard assembly on Tuesday, simply as the largest practice strike for 30 years obtained underneath means, Mr Johnson mentioned public sector pay rises must be “proportionate and balanced”.
The PM added: “Sustained higher levels of inflation would have a far bigger impact on people’s pay packets in the long run, destroying savings and extending the difficulties we’re facing for longer.”
Labour’s chief within the Lords, Baroness Smith, accused the federal government of utilizing “two sets of rules” – one for individuals on excessive incomes within the City, and one other for staff elsewhere.
She mentioned: “On one hand, we’re telling those who are working that you must have wage restraint. Does it not seem somewhat hypocritical to be saying to the City that those constraints, those curbs that have been in place are to be removed?”
Labour’s shadow enterprise secretary Jonathan Reynolds added: “It’s the hallmark of a government that lurches from crisis to crisis that instead of giving businesses real certainty, they’re looking down the sofa for random ideas.”
He added: “If this is what an audit review of four years, three consultations and thousands of pounds of taxpayers money has given us, it’s clear the Tories are incapable of governing.”
A BEIS spokesperson mentioned: “As announced last month, we are looking to strengthen the rules on clawing back bonuses from directors if their company collapses to stamp out ‘rewards for failure’.
“By the same token, we are also exploring whether there are any unnecessary restrictions on paying non-executive directors in shares, which could ensure they are fully invested in the success of the company they run. If the company does well, directors do well.”
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